Ghost Refineries: Nigeria Spends Billions, But Fuel Still Scarce

According to a report today, Nigeria’s major state-owned refineries in Port Harcourt, Warri, and Kaduna continue to lie largely idle despite billions of dollars spent on rehabilitation, sparking frustration among the public, industry experts, and oil marketers. These facilities were supposed to be key assets in reducing fuel import dependency and improving domestic refining — but today they’re increasingly called “ghost refineries.”

The Warri Refining and Petrochemical Company (WRPC), rehabilitated at enormous cost ($897.6 million), was declared operational at about 60% capacity.

However, just a month later in 2025, it was shut down due to a fault in the crude distillation unit’s main heater. Similarly, the Port Harcourt refinery, after long-awaited facelift and restart, has struggled to maintain output.

In recent months, it has been operating below 40% capacity, frequently shut down and going through maintenance.

Kaduna’s refinery has also been affected, with widespread reports of underperformance and delays in turning out refined petroleum products even after rehabilitation work.

Meanwhile, rumours and investigations suggest that corruption, mismanagement of turnaround maintenance (TAM) contracts, safety issues, and technical faults are major reasons for the non‑performance.

The Economic and Financial Crimes Commission (EFCC) is probing expenditures linked to the rehabilitation of these refineries — including Port Harcourt, Warri, and Kaduna — Zeefor alleged misuse of funds.

Stakeholders, including the Manufacturers Association of Nigeria (MAN), oil marketers, and civil society, are calling for urgent action.

Suggestions include privatization or public‑private partnerships, stricter oversight of tender awards, transparent maintenance schedules, and ensuring that technical infrastructure like catalytic reformers and units essential for fuel conversion are functional.

SOURCE: ahmadmkabir123

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